Covered California Certified Enroller Practice Exam

What is the term for a list of covered prescription drugs?

1. Medicaid Database

2. Drug Directory

3. Formulary

4. Pharmaceutical Index

The correct answer is: Formulary

The term "Formulary" refers to a comprehensive list of medications that are covered by a health insurance plan, specifically outlining which prescription drugs are eligible for reimbursement under that plan. Formularies are important because they guide healthcare providers and patients on the medications that are available to them, often including details such as dosages, restrictions, and tier levels, which can influence costs and coverage options. Understanding the significance of a formulary helps enrollers assist clients in making informed decisions regarding their medication needs. While other options like a Drug Directory or Pharmaceutical Index may reference lists of drugs, they do not specifically denote the coverage and reimbursement aspects tied to a health insurance policy like a formulary does. A Medicaid Database pertains to information specifically about Medicaid services, which is also outside the broader context of general health insurance coverage.